Tuesday, August 11, 2020

GoAir put on cash-and-carry mode by Airports Authority of India

A GoAir spokesperson assured its customers that there is no impact on its operations and will continue to run normally at all airports.
Airports Authority of India (AAI) on Monday put GoAir on cash-and-carry mode from the early hours of August 11. Earlier, it had warned the airlines of putting it under cash-and-carry mode if the applicable dues are not paid in time. GoAir owed ?60.75 crore dues to the AAI and had issued ?82 crore bank guarantee.

In a circular addressed to all airports owned by AAI, it stated that “The competent Authority has approved to put the operation of M/s GoAir on cash & carry basis out of all AAI Airports w.e.f. 0001 hrs. of 11th August 2020."

This means that now to utilise the services of AAI-owned 137 airports, GoAir will have to pay on a daily basis.

Last week, BusinessLine had reported that on July 28, the AAI had sent a letter to the airline requesting it to pay up the dues. However, it looks like the airline was unable to effect the payment. As on July 28, the GoAir owed ?60.75 crore, which includes a interest component of ?10 crore.
Initially, the airlines had denied that it had been put on cash and carry mode and stated that it maintained a very close and constructive working relationship with AAI.

When BusinessLine reached out to GoAir for a statement on Monday, a GoAir spokesperson said: “GoAir is engaged in constructive discussions with AAI and would like to assure our customers that there is no impact on GoAir’s operations. GoAir flights will continue to be operated normally at all airports.”
11/08/20 Forum Gandhi/Business Line
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